Faculty of Business and Economics

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This unit entry is for students who completed this unit in 2016 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

Monash University

6 points, SCA Band 3, 0.125 EFTSL

Undergraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.


Business and Economics

Organisational Unit

Department of Economics



  • Second semester 2016 (Day)
  • Second semester 2016 (Off-campus)


This unit focuses on the topics of international finance and trade. This includes the importance of international finance; the balance of payments accounts; the mechanisms for financing international trade; the effect of macroeconomic policies on trade balance; the determination of exchange rates; the operation of foreign exchange markets and alternative exchange rate systems; foreign investment; foreign exchange risk and operating exposure.


The learning goals associated with this unit are to:

  1. understand payments among nations and macroeconomic policies to adjust balance of payments disequilibrium
  2. study the operation of foreign exchange markets and alternative exchange rate systems
  3. acquire essential skills for managing foreign exchange risk and operating exposure
  4. explain multinational corporations in international trade and the mechanisms for financing international trade
  5. demonstrate in the individual assessment task the acquisition of a comprehensive understanding of the topics covered in this unit.


Within semester assessment: 40%
Examination: 60%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information

Chief examiner(s)


Students must have passed ECW1101 or ECG1101 before undertaking this unit.